Since the start of the year, nearly 4,000 individuals have sought unemployment insurance in Washington, D.C.—a significant increase from prior weeks, based on data from the Labor Department. This comes amidst efforts by President Donald J. Trump and Department of Government Efficiency (DOGE) chief Elon Musk to reduce the federal workforce.
Unadjusted for seasonality, D.C. has reported approximately 7,000 jobless claims in the first six weeks of the year, marking a 55 percent growth compared to the previous six-week span.
Claims hit 1,780 for the last reported week, increasing 36 percent from the week before and over four times the claims from a similar period in 2024. However, national jobless claim levels have remained stable, with the four-week average maintaining at 216,000 and showing a downward trend overall.
Contributing factors include the Trump administration’s directive to terminate numerous federal employees, with guidance from DOGE. Layoffs coupled with a large-scale buyout program for early retirements have played a role. Over 75,000 workers have accepted these offers.
Washington, D.C.’s unemployment rate was 5.5 percent as of December 2024—when Joe Biden was still in office—putting it among the nation’s highest, per Bureau of Labor Statistics data. In contrast, the broader metropolitan area had a lower rate of 2.7 percent. Nationwide, unemployment was 4.1 percent in December, declining slightly in January.
The D.C. housing market is also being affected and corrected after years of unsustainable growth. Thousand of properties have sprung up for sale or rental in the past few weeks, with prices reflecting people desperate to sell.
The Washington DC housing market is being affected by the layoffs in the federal govt.
Now imagine what happens to the rental market and housing market in the USA when 10 to 20 million illegal aliens are deported.
Rents and housing prices become affordable again. pic.twitter.com/Ggsbs31ecH
— Wall Street Mav (@WallStreetMav) February 16, 2025
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